I’ve often wondered how much better off companies would be if they diverted more advertisign cash to keeping customers rather than acquiring them.

In Australia, energy companies spend a bucketload on acquiring new customers – but the churn rate is horrific due to shocking service. Part of my work is in the renewable energy industry and I think it would be fair to say when choosing an energy provider; it’s basically down to picking the best of a bad bunch. The telecommunications sector isn’t all that far behind the energy sector when it comes to keeping customers happy.

This is where small business can have a distinct advantage. While the big guys spend oodles of time and money on trying to come up with clever banner ads and then distributing their often bleh creatives; the little guys can use one of the most powerful promotional tools of all; word of mouth – and that comes from happy customers.

It isn’t all that hard to keep folks happy if you keep one simple thing in mind – under-promise and over-deliver. If you say you ship things out within 48 hours, strive to do so within 24. Include a cheap little bonus with orders, follow up with customers personally, provide coupons – there’s really a lot you can do that doesn’t have to cost the earth in terms of cash or time.